Disability Insurance Canada: This is a very important topic for all working Canadians. An Illness or injury that leads to disability can be financially devastating because of lost income. A disability almost always causes lost income and the longer that disability lasts the worse it affects the disabled person.
Imagine if you were unable to work for the next few weeks, months or years. How long would you be able to pay your bills for?
Having a good disability insurance plan in place can reduce the financial impact of an illness or injury. The better the policy, the better the safety net that is created.
Not all policies are created equally! There are lots of points to consider when buying disability insurance. It starts with considering the definition of disability, then looking at the benefit period, waiting period, percentage of income replaced and of course the exclusions and limitations. Each of these points requires careful consideration. Hat having an insurance broker working for you to find the best coverage is of high importance.
Disability Insurance Canada - What is it and Why do you need it?
DI provides you with financial protection if you are unable to work because of sickness or injury. If you suffer a disability your insurance policy will pay a benefit on a monthly basis for as long as you are disabled or until your benefit runs out.
This highlights two reasons why you should have a broker work with you. A good broker will ensure that your coverage has the best definition of disability so that your benefit is not denied when you need it most (based on the policy wordings). The second reason is ensuring that your plan has an adequate benefit period so that your coverage does not run out too soon.
Disability Insurance protects your ability to earn an income. This is probably your greatest asset. If you tally up the income you will earn over many years or your lifetime you can see why I say this. You should always protect your assets – so why not protect your ability to earn an income.
Without your income you might lose your home and other valuable possessions simply because you can not pay your bills. Disability Insurance will prevent this from happening.
An Individual DI policy is generally the best protection available. Even if you have group insurance covering disability at work it is still a very wise idea to supplement it with a private DI plan. The private plan can fill the gaps left by your group insurance. If you have a group plan please read about Supplemental Disability Insurance to see how to fill the gaps left by your Group Disability Insurance
A well designed individual disability insurance plan is the best disability insurance. Long Term Disability Insurance is the most important coverage you should consider.
Are you self employed? DI is very important for you! Read about Self Employed Disability Insurance
Are you a professional? Take a look at Professionals Disability Insurance Information
Does your business or professional practice have a key employee? Consider Key Man Disability Insurance to protect your business.
Disability insurance can appear to be quite complicated. Even some insurance professionals shy away from offering disability insurance because they are not sure they fully understand the product! Please don’t let fear or confusion about this product become an obstacle to obtaining proper coverage. The odds of becoming disabled are greater than the odds of death prior to age 65. .
Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.
Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.
Always speak with a licensed insurance representative about your specific situation.
This site is general in nature and there may be errors or ommissions